XML 141 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2012
Notes to Consolidated Financial Statements [Abstract]  
Segment Information

NOTE 16. SEGMENT INFORMATION

We have six separately managed reportable segments, as follows:

  • SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.

     

  • SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California.

     

  • Sempra South American Utilities operates electric transmission and distribution utilities in Chile and Peru, and owns interests in utilities in Argentina. We are currently pursuing the sale of our interests in the Argentine utilities, which we discuss further in Note 4 above.

     

  • Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a natural gas distribution utility, electric generation facilities (including wind), a terminal for the import of LNG, and marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico.

     

  • Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Nevada and Pennsylvania to serve wholesale electricity markets in the United States.
  • Sempra Natural Gas develops, owns and operates, or holds interests in, a natural gas-fired electric generation plant, natural gas pipelines and storage facilities, natural gas distribution utilities and a terminal for the importation and export of LNG and sale of natural gas, all within the United States.

 

Sempra South American Utilities and Sempra Mexico comprise our Sempra International operating unit. Sempra Renewables and Sempra Natural Gas comprise our Sempra U.S. Gas & Power operating unit.

We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1.

During the fourth quarter of 2012, Sempra Mexico initiated a public debt offering process through one of its subsidiaries. We discuss this offering in Note 18. The subsidiary issuing the debt was previously included in Parent and Other. As a result of our anticipated debt issuance, we revised the manner in which we make resource allocation decisions to our Sempra Mexico segment and assess its performance. As a result, we have reclassified certain amounts from Parent and Other, which contains interest and other corporate costs and certain holding company activities, to our Sempra Mexico segment. Losses reclassified from Parent and Other to Sempra Mexico as a result of the restatement were $13 million in 2011 and $22 million in 2010. In accordance with U.S. GAAP, the historical segment disclosures have been restated to be consistent with the current presentation.

Sempra Natural Gas' sales to the DWR, under a 10-year contract that expired September 30, 2011, comprised 6 percent of our revenues in 2011 and 8 percent of our revenues in 2010.

The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 4. Amounts labeled as “All other” in the following tables consist primarily of parent organizations and the former commodities-marketing businesses of RBS Sempra Commodities, as we discuss in Note 4.

SEGMENT INFORMATION
(Dollars in millions)
 Years ended December 31,
 201220112010
REVENUES            
SDG&E$ 3,694 38%$ 3,373 34%$ 3,049 34%
SoCalGas  3,282 34   3,816 38   3,822 43 
Sempra South American Utilities  1,441 15   1,080 11   1 ― 
Sempra Mexico  605 6   736 7   827 9 
Sempra Renewables  68 1   22 ―   9 ― 
Sempra Natural Gas  931 10   1,632 16   2,009 22 
Adjustments and eliminations  (2) ―   (2) ―   (5) ― 
Intersegment revenues(1)  (372) (4)   (621) (6)   (709) (8) 
Total$ 9,647 100%$ 10,036 100%$ 9,003 100%
INTEREST EXPENSE            
SDG&E$ 173  $ 142  $ 136  
SoCalGas  68    69    66  
Sempra South American Utilities  32    34    8  
Sempra Mexico  8    19    26  
Sempra Renewables  22    13    7  
Sempra Natural Gas  98    80    92  
All other  251    233    243  
Intercompany eliminations  (159)    (125)    (142)  
Total$ 493  $ 465  $ 436  
INTEREST INCOME            
SoCalGas$ ―  $ 1  $ 1  
Sempra South American Utilities  15    22    7  
Sempra Mexico  2    1    1  
Sempra Renewables  6    ―    ―  
Sempra Natural Gas  55    34    36  
All other  4    ―    3  
Intercompany eliminations  (58)    (32)    (32)  
Total$ 24  $ 26  $ 16  
DEPRECIATION AND AMORTIZATION            
SDG&E$ 490 45%$ 422 43%$ 381 44%
SoCalGas  362 33   331 34   309 36 
Sempra South American Utilities  56 5   40 4   ― ― 
Sempra Mexico  62 6   63 6   62 7 
Sempra Renewables  16 1   6 1   2 ― 
Sempra Natural Gas  93 9   103 11   96 11 
All other  11 1   11 1   16 2 
Total$ 1,090 100%$ 976 100%$ 866 100%
INCOME TAX EXPENSE (BENEFIT)            
SDG&E$ 190  $ 237  $ 173  
SoCalGas  79    143    176  
Sempra South American Utilities  78    42    ―  
Sempra Mexico  73    37    64  
Sempra Renewables  (63)    (28)    (24)  
Sempra Natural Gas  (157)    72    44  
All other  (141)    (109)    (300)  
Total$ 59  $ 394  $ 133  

SEGMENT INFORMATION (Continued)
(Dollars in millions)
  At December 31 or for the years ended December 31,
  201220112010
EARNINGS (LOSSES)            
SDG&E(2)$ 484 56%$ 431 32%$ 369 52%
SoCalGas(2)  289 34   287 22   286 40 
Sempra South American Utilities  164 19   425 32   69 10 
Sempra Mexico  157 18   192 14   116 17 
Sempra Renewables  61 7   7 1   9 1 
Sempra Natural Gas  (241) (28)   115 9   71 10 
All other  (55) (6)   (126) (10)   (211) (30) 
Total$ 859 100%$ 1,331 100%$ 709 100%
ASSETS            
SDG&E$ 14,744 40%$ 13,555 41%$ 12,077 40%
SoCalGas  9,071 25   8,475 25   7,986 26 
Sempra South American Utilities  3,310 9   2,981 9   796 3 
Sempra Mexico  2,591 7   2,502 8   2,616 9 
Sempra Renewables  2,439 7   1,210 4   599 2 
Sempra Natural Gas  5,145 14   5,738 17   6,132 20 
All other  818 2   442 1   1,776 6 
Intersegment receivables  (1,619) (4)   (1,654) (5)   (1,751) (6) 
Total$ 36,499 100%$ 33,249 100%$ 30,231 100%
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT            
SDG&E$ 1,237 42%$ 1,831 64%$ 1,210 59%
SoCalGas  639 22   683 24   503 24 
Sempra South American Utilities  183 6   110 4   ― ― 
Sempra Mexico  45 2   16 ―   15 1 
Sempra Renewables  717 24   248 9   123 6 
Sempra Natural Gas  131 4   157 6   207 10 
All other  4 ―   4 ―   4 ― 
Intercompany eliminations(3)  ― ―   (205) (7)   ― ― 
Total$ 2,956 100%$ 2,844 100%$ 2,062 100%
GEOGRAPHIC INFORMATION            
Long-lived assets(4):            
United States$ 22,698 85%$ 21,405 85%$ 19,841 87%
Mexico  2,219 8   2,189 9   2,219 10 
South America  1,790 7   1,542 6   705 3 
Total$ 26,707 100%$ 25,136 100%$ 22,765 100%
              
Revenues:            
United States$ 7,711 80%$ 8,521 85%$ 8,504 94%
South America  1,441 15   1,080 11   1 ― 
Mexico  495 5   435 4   498 6 
Total$ 9,647 100%$ 10,036 100%$ 9,003 100%
(1)Revenues for reportable segments include intersegment revenues of:
 $8 million, $46 million, $108 million and $210 million for 2012, $6 million, $53 million, $300 million and $262 million for 2011, and $6 million, $44 million, $327 million and $332 million for 2010 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively.
(2)After preferred dividends.
(3)Amount represents elimination of intercompany sale of El Dorado power plant in 2011, as we discuss in Note 14.
(4)Includes net property, plant and equipment and investments.